0107 GMT - News that China's DeepSeek AI model overtook ChatGPT as the top app on the U.S. Apple App Store has raised concerns about the effectiveness of U.S. export controls, CIMB analysts say. The launch of the low-cost AI model triggered a $1 trillion selloff in U.S. and European tech stocks, with Nvidia slumping 17% overnight, they say. Claims that DeepSeek, powered by Nvidia's relatively low-tech H800 chips, has a comparable performance to leading AI models at a fraction of the cost comes despite the U.S. having recently expanded chip restrictions against China, casting doubt over both U.S. tech competitiveness and export controls, CIMB says. (fabiana.negrinochoa@wsj.com)
(END) Dow Jones Newswires
January 27, 2025 20:07 ET (01:07 GMT)
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